This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7712372.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
Economy worries push stocks lower Economy worries push stocks lower
(about 3 hours later)
Concerns about the state of the world economy have sent Asian and European shares sharply down, reversing gains made ahead of the US election. Concerns about the state of the world economy have sent Asian and European shares down, reversing gains made ahead of the US election.
In Europe, the UK's FTSE 100 index was down 4.1%, Germany's Dax fell 4.3% and France's Cac 40 lost 4.1%. In Europe, indexes had been down more than 4% before both the European Central Bank and the Bank of England announced interest rate cuts.
After the announcements UK's FTSE 100 index, Germany's Dax and France's Cac 40 cut their losses to less than 2%.
Interest rates were cut in an attempt to avoid a prolonged slowdown.
"Extraordinary times require extraordinary actions," said Stuart Porteous, head of RBS Group Economics, commenting on the Bank of England's decision to cut rates by "unprecedented" 1.5 percentage points.
Earlier in Asia, Japan's Nikkei index had closed down 6.5% while Hong Kong's Hang Seng dropped 7.1%.Earlier in Asia, Japan's Nikkei index had closed down 6.5% while Hong Kong's Hang Seng dropped 7.1%.
Both the European Central Bank and the Bank of England are expected to announce interest rate cuts later.
"We're no longer in a situation where big cuts would cause panic," said Bernard McAlinden, investment strategist at NCB Stockbrokers.
On Wednesday, the US Dow Jones index had ended 5.2% lower at 9,129.On Wednesday, the US Dow Jones index had ended 5.2% lower at 9,129.
'Back to reality''Back to reality'
Figures released on Wednesday showed retail sales fell in the eurozone during September, while US figures indicated that the service sector suffered a sharper-than-expected drop in activity during October.Figures released on Wednesday showed retail sales fell in the eurozone during September, while US figures indicated that the service sector suffered a sharper-than-expected drop in activity during October.
On Thursday, both Toyota and Isuzu Motors slashed annual profit forecasts, providing a further reminder of the weakness of the global economy.On Thursday, both Toyota and Isuzu Motors slashed annual profit forecasts, providing a further reminder of the weakness of the global economy.
"We had a week of rebound and then we're coming back to reality" said Francis Lun, general manager of Ful bright securities in Hong Kong."We had a week of rebound and then we're coming back to reality" said Francis Lun, general manager of Ful bright securities in Hong Kong.
"Despite the world euphoria over the election, the world's economy hasn't changed," he added."Despite the world euphoria over the election, the world's economy hasn't changed," he added.